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Avalon GloboCare Provides First Quarter 2018 Business Update; Reports 365% Increase in Revenues and Progress Towards Commercialization of its Cell-Based Technologies

FREEHOLD, N.J., May 14, 2018 (GLOBE NEWSWIRE) -- Avalon GloboCare Corp. (OTCQB:AVCO), a leading global developer of cell-based technologies, today announced financial results and provided a business update for the first quarter ended March 31, 2018.

First Quarter 2018 Highlights:

  • Revenues increased 365% to $307,913 for the first quarter ended March 31, 2018;
  • Cash at March 31, 2018 was $2.1 million;
  • Teamed up with Weill Cornell Medicine to establish joint translational research initiative in stem cell technology and regenerative medicine;
  • Formed strategic partnership with major biomedical enterprise Da An Gene Co., Ltd. (“Da An Gene”);
  • Majority-owned subsidiary, GenExosome Technologies Inc., launched its U.S. operations in Ohio;
  • Formed joint laboratory with top-ranked hospital in Shanghai for regenerative exosomics;
  • Submitted application for Nasdaq listing.

David Jin, M.D., Ph.D., CEO and President of Avalon GloboCare Corp., stated, “We made significant progress in the first quarter of 2018. We started off the year by forming a strategic partnership with Da An Gene, which is a leader in the molecular diagnostics market. We believe this partnership will help significantly accelerate our product development and commercialization by leveraging Da An Gene’s genomic sequencing and profiling platform, as well as its commercial network.”

“We have continued our expansion in the U.S. by launching operations of our GenExosome subsidiary in Ohio, where we plan to market and distribute our Exosome Isolation Systems. We are making progress with our commercial launch and believe this technology has the potential to transform the liquid biopsy and regenerative medicine markets by making exosome-specific diagnostics and therapies readily available and commercially viable. Continuing our U.S. growth, we have also jointly established a translational research training program with the Shahin Rafii Laboratory of the Division of Regenerative Medicine at Weill Cornell Medicine in New York. The joint laboratory provides us access to a world-class stem cell facility along with the existing clinical resources available to us through the Lu Daopei hospital network,” continued Dr. Jin.

“Importantly, we are moving forward with our plans to list on NASDAQ, which we believe will provide us greater exposure within the investment community as we execute on our upcoming milestones,” concluded Dr. Jin.

Revenues for the first quarter ended March 31, 2018 were $307,913 versus $66,286 for the first quarter ended March 31, 2017. The increase in revenues was due to property rental income, development services and sales of developed products. Operating loss for the quarter ended March 31, 2018 was $1.3 million versus operating loss of $0.5 million for first quarter ended March 31, 2017, which reflects increased SG&A expenses to support the anticipated growth, as well as an increase in public company expenses in advance of the planned listing on a national exchange. Net loss for the first quarter ended March 31, 2018 was $1.55 million or ($0.02) earnings per share, versus net loss of $0.55 million or ($0.01) earnings per share for the first quarter ended March 31, 2017.

About Avalon GloboCare Corp.

Avalon GloboCare Corp. (OTCQB:AVCO) is a global intelligent biotech developer and healthcare service provider dedicated to promoting and empowering high impact, transformative cell-based /technologies and their clinical applications, as well as healthcare facility management through its core platforms, namely "Avalon Cell" and "Avalon Rehab." In addition, Avalon provides strategic advisory and outsourcing services to facilitate and enhance their clients' growth, development, as well as competitiveness in both domestic and global healthcare markets. Avalon also engages in the management of stem cell banks and specialty clinical laboratories. Through its U.S. subsidiary, GenExosome Technologies Inc., Avalon further establishes its leading role in the fields of liquid biopsy, precision medicine and regenerative medicine.

Forward-Looking Statements
Certain statements contained in this press release may constitute "forward-looking statements." Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors as disclosed in our filings with the Securities and Exchange Commission located at their website (http://www.sec.gov). In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of the press release.

Contact Information:
Avalon GloboCare Corp.
4400 Route 9, Suite 3100
Freehold, NJ 07728
PR@Avalon-GloboCare.com

Investor Relations:
Crescendo Communications, LLC
Tel: (212) 671-1020
avco@crescendo-ir.com

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AVALON GLOBOCARE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
       
    As of
    March 31, 2018 December 31, 2017
    (Unaudited)  
ASSETS    
       
CURRENT ASSETS:    
 Cash$2,125,656 $3,027,033 
 Accounts receivable, net of allowance for doubtful accounts 7,027  10,179 
 Tenants receivable, net of allowance for doubtful accounts 37,990  38,469 
 Security deposit 28,016  6,916 
 Inventory 10,111  2,667 
 Prepaid expenses and other current assets 74,406  149,713 
       
  Total Current Assets 2,283,206  3,234,977 
       
OTHER ASSETS:    
 Security deposit - noncurrent portion -  25,322 
 Prepayment for long-term assets 47,714  153,688 
 Property and equipment, net 158,415  48,029 
 Investment in real estate, net 7,591,952  7,623,757 
 Intangible assets, net 1,501,367  1,583,260 
       
  Total Other Assets 9,299,448  9,434,056 
       
  Total Assets$11,582,654 $12,669,033 
       
LIABILITIES AND EQUITY    
       
CURRENT LIABILITIES:    
 Accounts payable$- $29 
 Accrued liabilities and other payables 302,500  124,064 
 Accrued liabilities and other payables - related parties 25,481  39,927 
 Deferred rental income 7,254  12,769 
 Loan payable 1,500,000  1,500,000 
 Interest payable 375,096  138,110 
 VAT and other taxes payable 34,357  2,997 
 Tenants' security deposit 73,400  92,288 
 Due to related party 450,000  450,000 
 Refundable deposit 3,000,000  3,000,000 
       
  Total Current Liabilities 5,768,088  5,360,184 
       
 Commitments and Contingencies    
       
EQUITY:    
 Preferred stock, $0.0001 par value; 10,000,000 shares authorized;    
  no shares issued and outstanding at March 31, 2018 and December 31, 2017 -  - 
 Common stock, $0.0001 par value; 490,000,000 shares authorized;    
  70,278,622 shares issued and 69,758,622 shares outstanding at March 31, 2018;    
  70,278,622 shares issued and outstanding at December 31, 2017 7,028  7,028 
 Additional paid-in capital 12,016,633  11,490,285 
 Less: common stock held in treasury, at cost;    
  520,000 and 0 shares at March 31, 2018 and December 31, 2017, respectively (522,500) - 
 Accumulated deficit (4,999,233) (3,517,654)
 Statutory reserve 6,578  6,578 
 Accumulated other comprehensive loss - foreign currency translation adjustment (39,316) (91,994)
 Total Avalon GloboCare Corp. stockholders' equity 6,469,190  7,894,243 
 Non-controlling interest (654,624) (585,394)
       
  Total Equity 5,814,566  7,308,849 
       
  Total Liabilities and Equity$11,582,654 $12,669,033 
         


  
AVALON GLOBOCARE CORP. AND SUBSIDIARIES 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS 
        
    For the Three Months Ended For the Three Months Ended 
    March 31, 2018 March 31, 2017 
        
REVENUES     
 Real property rental$296,623 $-  
 Development services and sales of developed products 11,290  -  
 Medical related consulting services - related party -  66,286  
  Total Revenues 307,913  66,286  
        
COSTS AND EXPENSES     
 Real property operating expenses 210,274  -  
 Development services and sales of developed products 16,520  -  
 Medical related consulting services - related party -  99,581  
  Total Costs and Expenses 226,794  99,581  
        
REAL PROPERTY OPERATING INCOME 86,349  -  
GROSS LOSS FROM DEVELOPMENT SERVICES AND SALES OF DEVELOPED PRODUCTS (5,230) -  
GROSS LOSS FROM MEDICAL RELATED CONSULTING SERVICES -  (33,295) 
        
OTHER OPERATING EXPENSES:     
 Selling expenses -  8,711  
 Compensation and related benefits 538,814  182,927  
 Professional fees 571,772  207,218  
 Other general and administrative 285,252  60,732  
        
  Total Other Operating Expenses 1,395,838  459,588  
        
LOSS FROM OPERATIONS (1,314,719) (492,883) 
        
OTHER INCOME (EXPENSE)     
 Interest income 408  794  
 Interest expense (236,986) -  
 Foreign currency transaction loss -  (57,244) 
 Other income 328  -  
        
  Total Other Expense, net (236,250) (56,450) 
        
LOSS BEFORE INCOME TAXES (1,550,969) (549,333) 
        
INCOME TAXES -  -  
        
NET LOSS$(1,550,969)$(549,333) 
        
LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST (69,390) -  
        
NET LOSS ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS$(1,481,579)$(549,333) 
        
COMPREHENSIVE LOSS:     
 NET LOSS (1,550,969) (549,333) 
 OTHER COMPREHENSIVE INCOME (LOSS)     
  Unrealized foreign currency translation gain (loss) 52,838  (39,771) 
 COMPREHENSIVE LOSS$(1,498,131)$(589,104) 
 LESS: COMPREHENSIVE LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST (69,230) -  
 COMPREHENSIVE LOSS ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS$(1,428,901)$(589,104) 
        
NET LOSS PER COMMON SHARE ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS:     
   Basic and diluted$(0.02)$(0.01) 
        
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:     
     Basic and diluted 69,781,733  62,595,289  
        


 
AVALON GLOBOCARE CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
       
    For the Three Months Ended For the Three Months Ended
    March 31, 2018 March 31, 2017
       
CASH FLOWS FROM OPERATING ACTIVITIES:    
 Net loss$(1,550,969)$(549,333)
 Adjustments to reconcile net loss from operations to    
  net cash used in operating activities:    
  Depreciation and amortization 123,379  26 
  Stock-based compensation and service fees 526,348  138,334 
 Changes in operating assets and liabilities:    
  Accounts receivable 3,469  - 
  Accounts receivable - related parties -  547 
  Tenants receivable 479  - 
  Inventory (7,372) - 
  Prepaid expenses and other current assets 75,693  2,254 
  Security deposit 5,284  (23,922)
  Accounts payable (30) - 
  Accrued liabilities and other payables 178,136  29,202 
  Accrued liabilities and other payables - related parties (14,498) 16,257 
  Deferred rental income (5,515) - 
  Interest payable 236,986  - 
  Income taxes payable -  (21,150)
  VAT and other taxes payable 31,264  (5,029)
  Tenants' security deposit (18,888) - 
       
NET CASH USED IN OPERATING ACTIVITIES (416,234) (412,814)
       
CASH FLOWS FROM INVESTING ACTIVITIES:    
 Prepayment made for acquisition of real property -  (2,000)
 Purchase of property and equipment (7,852) - 
       
NET CASH USED IN INVESTING ACTIVITIES (7,852) (2,000)
       
CASH FLOWS FROM FINANCING ACTIVITIES    
        
 Repurchase of common stock (522,500) - 
 Refundable deposit in connection with Share Subscription Agreement -  3,000,000 
       
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (522,500) 3,000,000 
       
EFFECT OF EXCHANGE RATE ON CASH 45,209  (40,147)
       
NET (DECREASE) INCREASE IN CASH (901,377) 2,545,039 
       
CASH  - beginning of period 3,027,033  2,886,189 
       
CASH - end of period$2,125,656 $5,431,228 
       
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
 Cash paid for:    
  Interest$- $- 
  Income taxes$- $21,150 
       
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
 Common stock issued in connection with Share Subscription Agreement$- $300 
 Acquisition of equipment by decreasing prepayment for long-term assets$110,103 $- 
Monday, May 14, 2018 - 08:00